Ship Finance: Where is the Money?
By Greg Trauthwein
While capital for the maritime industry remains tight, lenders insist that funding is available for well- managed public companies. At the 17th Annual Joint Shipping Conference held at the Waldorf Astoria Hotel February 8, 2011 - a conference co-sponsored by the Hellenic-American/Norwegian-American Chambers of Commerce - finance leaders addressed the question of capital availability.
"There is a flight to quality," said Martin Lunder, SVP, Nordea Bank (NDA-SEK.ST). "The window is open, but the mesh is really tight."
Proof is the value of industry deals through Nordea Bank over the past three years, from $30b in 2008 to $8b in 2009 to $15b in 2010.
"Existing companies with a track record have the best access today," said Ted Jadick, president & CEO, DnB Nor Markets. "Availability is limited, but it's there for proven entities."
Regarding market specific outlooks, Wiley Griffiths, executive director, Morgan Stanley (MS), summarizes: "The tanker market is a very tough market right now; containerships still have some upside; and drybulk is a bit of a wildcard, strong on the demand side but everyone is worried about the orderbook."